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If interest rates increase from 6 percent to 7 percent, which of the following bonds will have the largest percentage decrease in its value? a.

If interest rates increase from 6 percent to 7 percent, which of the following bonds will have the largest percentage decrease in its value?

a.

A 10-year zero-coupon bond.

b.

A 10-year bond with a 10 percent semi-annual coupon.

c.

A 30-year zero-coupon bond.

d.

A 5-year zero-coupon bond.

e.

A 5-year bond with a 12 percent semi-annual coupon.

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